How To Start a New York LLC

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Last Updated: August 15, 2022

Overview

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New York is one of the most iconic states. They are known for amazing pizza, statue of liberty and of course the NY Yankees and Mets. It’s one of the most populous states and this guide will help you figure out how to start an LLC in New York. There are lots of rules you’ll need to go through but that’s why we’re here – to make life easier for you.

There are a few services you should consider when you’re getting your business incorporated which you can find in the boxes below but make sure to read through all the details below before going straight to setting up an account.

Name Your New York LLC

The selection of a business name is one of the best steps for creating an LLC in New York. Make sure you choose an identifier that meets the New York names criteria and can easily be searched for prospective customers.

You’ll need to follow NY LLC naming guidelines. You can do a quick search on the NY Public Inquiry site here where you can plug in the details to do a quick search on New York LLCs and determine if there is already an LLC in New York with that name or any other business entity that you’ll need to consider when filing a name here.

If you need some additional help, they do have some guidance you can use when searching for other LLC in New York here: https://apps.dos.ny.gov/publicInquiry/EntityHelp

The business name you choose for your New York LLC must be

  • Distinguishable from any other business already incorporated in New York
  • Can’t include certain restricted words (like FBI, Treasury, etc.) without additional paperwork and approval3. Must end with an LLC designator like “Limited Liability Company,” “L.L.C.,” or “LLC”

You can reserve a name for your New York LLC by filing a Name Reservation Request with the NY Department of State. The form and filing fee ($20 for online filings, $40 for paper filings) can be submitted online or by mail.

To file online, visit the NY Department of State website and scroll down to the “Name Availability” section. Click on the link for “Submit a Name Reservation Request Online.”

If you want to file by mail, download and print the Name Reservation Request form, which is available on the NY Department of State website.

Mail the completed form and filing fee to:

Department of State

Division of Corporations, State Records and Uniform Commercial Code

One Commerce Plaza

99 Washington Avenue

Albany, New York 12231-0001

You can also expedite your filing by using the New York Department of State’s expedited filing service. The fee is $50 in addition to the standard $20 filing fee, for a total of $70.

To use the expedited filing service, submit your request form and fees by mail or in person to

Department of State

Expedited Filings Unit

41 State Street

Albany, NY 12231

You can also fax your request to (518) 473-1699 or email it to LLCExpeditedFilingsUnit@dos.ny.gov.

Choose a Registered Agent in New York

All New York LLCs must have a Registered Agent in the state. A Registered Agent is a person or business that agrees to receive legal papers on behalf of your LLC. This is typically done if you are being sued or need to be served with other legal documents.

Your Registered Agent must have a physical address in New York and agree to accept service of process on your LLC’s behalf. You can name yourself as the Registered Agent, but we recommend using a professional service.

If you use a professional Registered Agent service, they will handle all the paperwork and requirements for you. You’ll see that we recommend Tailor Brands as our primary LLC service that can act as a Registered Agent for you. There are other services you can take a look at in the right sidebar too but that’s the primary partner we’re recommending because it’s simple and easy to use.

The New York division also considers using a registered agent service to make sure you’re getting the right legal documents to the right place. The internal revenue service is going to want to make sure as you’re filing you have the right business structure setup for your New York registered agent which will require you to have the correct LLC formation. The New York tax department will require this and as you setup a business address, you’ll most likely want to have a registered agent that is not your business address. It’s not New York’s LLC law but it’s one of the important steps to separate your business entity from the registered agent.

File Your New York LLC Articles of Organization

The filing fee is $200 for online filings and $210 for paper filings.

Include the following in your Articles of Organization:

  • The LLC’s name and address
  • The name and address of the LLC’s Registered Agent
  • The LLC’s purpose
  • Whether the LLC will be managed by members or managers
  • The name and address of each person who will serve as a manager or member
  • The LLC’s effective date, if different from the date of filing
  • Sign and date the Articles of Organization

Mail the completed Articles of Organization and filing fee to

Department of State

Division of Corporations, State Records and Uniform Commercial Code

One Commerce Plaza

99 Washington Avenue

Albany, New York 12231-0001

You should receive a filing receipt and your Articles of Organization within 2-3 weeks.

Get your NY Business Permits

You’ll need to get several business permits and licenses before you can start operating your New York LLC. Depending on your business activities, location, and industry, you may need to get local, state, and federal licenses and permits.

It’s a good idea to check with your city or county clerk’s office to see what business permits you need. You can also visit the New York Business Express website for more information on state licenses and permits.

If you will be selling products or services that are subject to sales tax, you will need to register for a sales tax permit with the New York State Tax Department.

You can register for your sales tax permit online, by mail, or in person. To register online, visit the New York Taxpayer Access Center website.

To register by mail, complete and send Form ST-100, Sales Tax Vendor Registration to:

NYS TAX DEPT

W A Harriman Campus

Albany NY 12227

If you register in person, take Form ST-100 to your local county tax office.

Follow New York LLC Publication requirements

What are NY state laws regarding the LLC publishing?

The company must notify its principal office or designated agent office within 120 days.

The newspaper must be approved by the county clerk of the County you designated in your organization document. After publication, the publisher of any newspaper shall provide your affidavit of publication.

Publication may be made in any newspaper published at least once a week and having a general circulation within the county or counties where your business is to be carried on, for six (6) successive weeks.

You must then file the affidavit of publication with:

The Secretary of State

Division of Corporations, State Records & UCC

161 Delaware Avenue, Albany NY 12231

Create a New York LLC Operating Agreement

An LLC operating agreement is not required in New York, but we recommend creating one anyway.

An LLC operating agreement is a document that outlines the ownership and member duties of your limited liability company. This helps to prevent future disagreements and confusion about the roles, responsibilities, and expectations of each LLC owner.

To create your LLC operating agreement, you will need to gather the following information

  • The name and address of each LLC owner
  • The percentage of ownership interest for each member
  • How the LLC will be managed (by members or managers)
  • Who will serve as the LLC’s initial manager(s)
  • The duties and responsibilities of each LLC owner and manager
  • How profits and losses will be distributed among the members
  • What will happen if a member leaves the LLC

The terms of the operating agreement can be as simple or complex as you want them to be. You can draft your own operating agreement or hire an attorney to help you.

Once you have created your LLC operating agreement, each member should sign and date the document. Keep a copy of the signed agreement in your LLC’s records.

You can also get help from Tailor Brands or any of the other LLC formation service companies that we recommend. It’s important to have an Operating Agreement (especially when it’s a multiple member LLC).

Get an operating agreement in place today.

Get a New York LLC EIN

An Employer Identification Number is something you’ll need for the federal government to identify your business. It’s the best way to get your business started because it will also help you get a business account setup and at tax time – it helps you there too.

You may apply for an EIN in various ways, and now you may apply online. This is the fastest way to obtain your number. You should receive your EIN immediately after submitting the online application.

If you would like to apply by mail or fax, you may use Form SS-4, Application for Employer Identification Number.

Complete and send the form to the address specified on the form along with the required filing fee. You should receive your EIN within 4 weeks.

Whether you’re going to be starting a sole proprietorship or have a New York Limited Liability Company, you’re going to need to consider this when you have multiple LLC members associated to your business. If you’re a single member LLC, that will be something to consider too.

If you’re going to conduct business in New York, you’ll need an EIN because it will help you with your federal income taxes too. Get your EIN.

FAQs

How much does it cost to start a LLC in NY?

There is a $200 filing fee to form a LLC in New York. There are many business expenses on top of the LLC filing fee. You’ll need to consider whether you need your own business credit card, bank account and a taxation and finance website that would help you check to make sure you’re filing taxes correctly.

Tailor Brands can help you with your logo design, website setup, operating agreement and with the annual filing fee that will come along with all this.

To actually register and form your LLC in New York is not the expensive part – it’s all the business expenses that go along with it so keep that in mind as you start to scale up!

Do you need a business license for an LLC in NY?

You can get an LLC license with a single license depending upon the business type you are running. Additionally your LLC may have to obtain federal or regional licensing based upon the type of business you operate.

If you’re going to get a business license you’ll also need to make sure the written operating agreement has been completed for the LLC owners whether that’s a single member LLC, foreign LLC or any other type.

How do I start an LLC online in NY?

The first thing to do here is fine one of the services that will help you make sure you’re not your own registered agent, file the LLC formation paperwork with the state and help you with the operating agreement too.

You can do all this with Tailor Brands or the other services we recommend. Tailor Brands is at the top of the list because of how simple it is to use their service and they are just really easy to work with.

How long does it take to establish an LLC in NY?

The state can grant the LLC a certificate confirming it has officially been established once the LLC forms documents have been submitted to the state. Your certificate will likely take around 6-8 weeks.

You’ll need to file an annual report with the state each year and most LLCs will be required to file a biennial (every other year) report as well.

How is a New York LLC taxed?

An LLC in New York is not taxed as its own entity, but “passes through” any taxes owed to the owners of the LLC. This is different from a corporation, which is taxed as its own entity.

The owners of an LLC in New York are responsible for paying any taxes owed on their share of the LLC’s profits. The LLC itself does not pay taxes.

There is no state tax on LLCs in New York, but there is a gross receipts tax of 4% on LLCs that do business in New York City.

Do I need a bank account?

It is not required by law to have a business bank account, but it is strongly recommended. A business bank account keeps your personal and business finances separate, which makes it easier to track expenses and deduct them come tax time. Additionally, many banks offer special services and perks to businesses that can save you money.

For LLCs in New York, we recommend using Novo Bank. It makes configuring and setting up your business bank account very easy. Go check out Novo Bank when you have an opportunity to do so. It’s simple and easy to get setup once you have your EIN.

Do you need business insurance in New York?

There is no law in New York requiring LLCs to carry business insurance, but it is highly recommended. Business insurance protects your LLC from lawsuits and claims that may arise from your business activities.

We recommend using BusinessInsurance.net because their user interface is so easy to use. It’s simple and will make your life incredibly easy.

How much does business insurance cost in New York?

Business insurance is a tricky thing. It really depends on what type of business you’re going to be running. If you are just doing some internet marketing stuff – it’s very different than running an auto repair shop or a restaurant. Clearly you’re going to need insurance if you have employees with heavy machinery.

You should expect that insurance will range from $500 to $5,000 per year in New York but it could be more than that too.

We recommend going to businessinsurance.net to really figure out what your needs are – don’t take our word for it. Go to a broker who can help you.